In 2019, the Indian banking system saw significant changes with the government’s plan to merge many public sector banks. This is done to strengthen the banks and improve customer reach as well as efficiency.
When banks merge, the assets, liabilities, and operations of a number of banks are combined under a single entity. Sometimes this leads to confusion in the customers about their accounts and branches, but there is nothing to worry about.
If your bank has been merged with another, you will be guided by the bank officials through regular communications. To make it easier for you, we’ve compiled a list of banks that have recently merged.
This article will also answer all your questions related to bank mergers in India.
India had many small banks operating as separate entities. They often depended on the government’s aid, which added to its burden. According to the Reserve Bank of India, merging most of these banks would pave the way to building a robust, well-funded, and global banking system.
Here are some major reasons behind bank mergers -
Improves efficiency and customer reach
Improves the bank’s financial stability
Increases the number of products being offered
In August 2019, it was announced that 10 public sector banks would be merged into 4. After this, 4 more mergers were announced. In total, now there are 12 public sector banks operating after the bank merger in India.
Here is a list of all the public sector banks that were merged into other banks to make them more robust. Out of the 12 total, these 6 were formed after the bank merger in India was announced-
| Sl. No. | Merged Into (Anchor Banks) | Banks Merged | Merger Year |
|---|---|---|---|
|
1. |
Bank of Baroda |
Dena Bank Vijaya Bank |
1st April, 2019 |
|
2. |
Canara Bank |
Syndicate Bank |
1st April, 2020 |
|
3. |
Indian Bank |
Allahabad Bank |
1st April, 2020 |
|
4. |
Punjab National Bank |
Oriental Bank of Commerce United Bank of India |
1st April, 2020 |
|
5. |
State Bank of India |
State Bank of Bikaner And Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore Bharatiya Mahila Bank |
1st April, 2017 |
|
6. |
Union Bank of India |
Andhra Bank Corporation Bank |
1st April, 2020 |
Out of the total 12, 6 banks remained independent after the bank merger in India was announced. Here is a list of the 6 banks which are operating as separate identities-
Indian Overseas Bank
UCO Bank
Bank of Maharashtra
Punjab and Sind Bank
Bank of India
Central Bank of India
At present, there are only 12 public sector banks functioning in India. 6 of them have been formed by merging several smaller banks making them more global in nature. The other 6 remain independent entities.
In most cases, bank mergers are positive news and you have nothing to worry about. Your current bank officials will give you all necessary information about any mergers beforehand. They will also guide you as to how you can continue your banking operations as usual.
Your bank will intimate you about any merger activities. They will guide you as to what steps you have to follow. In most cases the transition is very smooth and for the better.
The decision to merge banks has an economical impact on the country. As a customer, you get to be part of a bigger bank system which may be beneficial to you in many ways. You have access to more ATMs, more branches, and superior infrastructure.
The decision to close a branch depends on many factors. A few branches of some banks were closed after the mergers, but there is no reason to worry. Your bank officials will promptly inform you before any such action is taken.
This depends on your bank. Your bank will give you enough time to upgrade to a new ATM card in case yours is about to become non-functional.
No, you will not have to open a new account after your bank merges with another. You might be given a new account number, ATM card, etc. But these will duly be taken care of by your bank officials.
As per the latest news, 4 public sector banks might be merged next. UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India might be merged. Alternatively, merging with Union Bank of India, Canara Bank, or Indian Bank is being considered.
You should follow the news for any information on further bank mergers. However, if your bank merges with another, your bank will communicate it to you via various channels.
Currently, there are 12 banks in India after the latest merger. Out of these 6 have remained independent entities, and the other 6 have been formed by merging several smaller banks.
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